This article appeared first on The Stock Market Blueprint Blog.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

As discussed here, The Stock Market Blueprint is building and tracking a Shadow Stock Portfolio for each Premium stock screen featured on the site.

The purpose of the shadow stock portfolios is to show investors how systematic investment strategies can be implemented using the stock screens featured on TheStockMarketBlueprint.com.

Additionally, the Shadow Stock Portfolios are establishing track records for the strategies being implemented. These records provide actual investment results in real-time.

NCAV Portfolio

Here’s a breakdown on how the NCAV Portfolio is performing.

Since beginning this Shadow Stock Portfolio on June 1, 2016, it owns three stocks and is 30% invested.

The return on the invested capital is 12.54%. The total return on the portfolio when including cash is 3.76%.

ncav portfolio holdings

Here’s what the portfolio owns and its returns so far:

Stock 1:

  • Company Name: China Green Agriculture, Inc. 
  • Ticker Symbol: CGA
  • Shares Purchased: 714
  • Buy Price: $1.40
  • Buy Date: 6/1/16 (closing price)
  • Current Price: $1.45 (closing price on 9/1/16)
  • Reinvested Dividends: None
  • Total Investment: $999.60
  • Current Balance: $1,035.30
  • Return: 3.57%

Stock 2:

  • Company Name: Sorl Auto Parts, Inc.
  • Ticker Symbol: SORL
  • Shares Purchased: 588
  • Buy Price: $1.70
  • Buy Date: 7/7/16 (closing price)
  • Current Price: $2.40 (closing price on 9/1/16)
  • Reinvested Dividends: None
  • Total Investment: $999.60
  • Current Balance: $1,411.20
  • Return: 41.18%

Stock 3:

  • Company Name: American Lorain, Corp.
  • Ticker Symbol: ALN
  • Shares Purchased: 1,428
  • Buy Price: $0.70
  • Buy Date: 8/12/16 (closing price)
  • Current Price: $0.65 (closing price on 9/1/16)
  • Reinvested Dividends: None
  • Total Investment: $999.60
  • Current Balance: $928.20
  • Return: -7.14%

Portfolio:

  • Starting Balance: $10,000.00
  • Invested Balance: $3,374.70
  • Cash Available to Invest: $7,001.20
  • Current Balance: $10,375.90
  • Total Return: 3.76%

Strategy Rules

Sign in to your premium account to review the strict “buy” and “sell” rules followed by the NCAV portfolio.

NCAV Description

The Net Current Asset Value (NCAV) stock screen was made popular by Benjamin Graham and proved to be a successful approach for the Graham-Newman Corp.

Warren Buffett also enjoyed terrific returns by implementing this approach in the early days of his career.

Buffett called this strategy the “cigar-butt” approach because “a cigar butt found on the street that has only one puff left in it may not offer much of a smoke, but the ‘bargain purchase’ will make that puff all profit.”

See a more detailed explanation of the screen here.

Build Your Own Portolio

By investing blindly based on what stock screens tell you to, rule-based investment strategies eliminate human emotions from the decision-making process.

Follow along every week to see the performance of a different featured Shadow Stock Portfolio. Each strategy is highlighted every eight weeks.

If you’re a Premium subscriber, you can follow along in real-time as well as implement the strategies yourself.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Mitchell Mauer is the Founder of TheStockMarketBlueprint.com. The Stock Market Blueprint is a site that finds value stocks for investors building long-term wealth. The site’s investment philosophy is anchored in principles established by Benjamin Graham and his most reputable followers over the last 100 years.